I have been trading for 10 years and have tested many different strategies on the Trading Rush channel.
I’m going to combine all that data and experience to give you a different perspective.
Something that will actually make you a profitable trader.
For example, step number one is to forget most things you know about trading.
Because if everyone is a superhero, no one is.
In the movie The Incredibles, the villain tries to turn everyone into a superhero and says,
When everyone is a superhero,
no one is.
Trading has a similar problem.
Most traders learn the same things, do the same things, and want to become profitable.
But data says around 90% of traders lose money.
So if you want to be profitable, why would you learn the same things and do the same things as most traders?
So the first step is to forget most things you know about trading, because it is not making money for most traders.
Step 2 is to make a list of everything and rate it.
There is a book called Blue Ocean Strategy, which shows how to make a business stand out in a competitive market.
It says to draw a chart like this, where the x-axis shows everything your competition does.
So for trading, we will write different things traders do, like the number of indicators they use, what risk they use per trade, the timeframes they trade, and other things.
On the y-axis, you basically give a rating between 1 and 10, or small and big.
So it would look something like this.
The Blue Ocean Strategy says if you want to become successful,
do the opposite of what your competition is doing.
For example, most traders who lose are doing day trading, so we will focus on it less, or maybe even do swing trading.
Since most traders are losing on smaller timeframes, we will switch to higher timeframes.
Most are trying to get rich quick,
but we will play the long game and let compounding work in our favor.
Most who lose risk very big,
so we will never risk big.
Beginner traders use multiple indicators, so we will only use a few or even a single strategy.
That way, we can only focus on one thing and get really good at it.
Step number three is to pick the oldest strategy.
It lasted long because it works.
Don’t try to reinvent the wheel.
Things like support and resistance that have existed from the start do work, even now.
I even tested it on this Trading Rush channel and it got a 60% win rate.
Nowadays, people use some nonsense, complicated strategy just because it sounds smart.
But if you can’t make money with the good old strategies, then your strategy is not the problem.
Something else is wrong in your trading system.
So do not try to reinvent the wheel.
Use what is already proven to work for decades and decades.
Step four is to write down your goals,
and most importantly,
the time.
Imagine a person driving a car but only looking at the traffic lights for directions.
If the light is green, he goes.
If the light turns red, he stops.
If there is a left arrow, he takes a left turn.
If there is a right arrow, he goes right.
This guy is mindlessly travelling anywhere the arrow points.
He is moving without any goal.
but imagine another person who has a destination set on his google maps
he knows exactly where he’s going how much time it would take and which turn is the correct one
this driver has a very high chance of achieving his goal
so in trading write down your goal and when you want to achieve it
if you don’t write the time then it is a mindless goal that will not guide you on the right path
But if you decide to achieve a certain amount of profit in a year.
Then you know how much profit you need in a month, in a week, or even in a day to achieve that yearly goal.
And because of that, you will be able to decide how many trades you need to take in a day, in a month, and in a year.
Step number five is to actually understand the strategy logic.
In the show Rick and Morty, there’s an episode where the Earth gets teleported to a competition, and these big head things appear in the sky.
Now, Rick and Morty figure out that it’s a competition and they have to perform to survive.
But some people think that the big heads are asking for a sacrifice.
So they start sacrificing people like thieves, goths, and movie talkers.
Trading is like this competition, where some people like hedge funds and big institutions know what’s actually going on.
But then there are we retail traders who don’t try to get the proper information because it’s difficult.
So we use our own little logic like indicator crossovers and silly things like that to make sense of it all.
But we’re just wrong most of the time.
So even if it’s difficult, focus on things outside the indicator that actually move the price.
Step number six is to write the details.
Fly as a pilot,
not as a passenger.
Many passengers say they can land a plane without any experience, but in reality, they can’t.
Even the pilot who has more than 10,000 hours of flying experience always uses a checklist, step-by-step instructions, and rules to fly the plane safely.
When we are beginner traders, we’re like the passenger on a plane who thinks we can do a difficult task without any prior experience.
But to trade like an expert,
we have to fly the plane like an expert.
We have to write down all the steps and rules of our strategy in detail.
And then use a checklist like the pilot.
If the pilot doesn’t use a checklist, he might forget something or skip a step. mayday mayday
That would bring down the plane and blow up the account.
Step number seven is to record and read the details.
Don’t close your eyes.
When I was a beginner trader, I took screenshots of all my trades and kept them in win-loss folders.
Once I had enough screenshots, I saw patterns in the losing trades and winning trades.
I saw reasons why my trades won and lost.
By writing all my trades in an Excel sheet and looking at the profit graph,
I knew if what I was doing was actually working or not.
For example, in the early days, I knew I was doing better than 90% of traders because my profit graph was not moving continuously in the downward direction.
It was staying pretty much flat.
That gave me confidence to continue trading even though it was not making money yet.
After learning from screenshots of my trades and by tracking other details, my profit graph started to move up more consistently.
And even more importantly, when it moved down by a big amount and I thought I was doing something wrong,
my profit graph showed me that it was just a small downward move in an overall uptrend.
Short-term losses didn’t affect my trading decisions because I could see my overall profit graph moving in the upward direction.
That’s why it is important to record and read the details of everything you’re doing.
Step number eight is to focus 100% on data.
Think like Einstein,
not Joe. Who’s Joe?
Once you have your profit data, entry rules, screenshots of trades, and win rate from live trading, you will have a unique pattern of you.
You will have so much data about the strategy you use and how you use it.
you will see your weaknesses and strengths and so much more.
There will be nothing stopping you from improving, as long as you think like a scientist, a mathematician, or yo boi Einstein.
Imagine if Einstein saw all your tracking data, he could definitely tell you what to do next and what to stop doing.
Well, unless you build a time machine to meet him, you are the one who has to analyze the unique pattern of you based on all the data you have collected.
This is literally what I did.
I followed data as much as possible.
Step number nine is to repeat step number eight.
There is a movie called Groundhog Day, where the main character is a not-so-good person stuck in a time loop.
His day is literally not moving forward, and he is reliving the same day over and over and over!
So after realizing he’s in a loop, he starts doing whatever he wants.
But after doing that for so many days and losing hope, he finally decides to work on himself and become a better person.
And only after that point, only after he becomes a better person,
his day literally moves forward.
So step nine is a learning loop where you focus 100% on data
until you really become a profitable trader.
And then step 10 is everything amazing that successful trading brings us.